International Advances in Economic Research

, Volume 7, Issue 4, pp 431–442 | Cite as

Charitable contributions and tax price elasticities for nonitemizing taxpayers

  • David H. Eaton


This paper uses a balanced panel of taxpayers to examine the price and income elasticities for charitable contributions for nonitemizing taxpayers. One-way and two-way static fixed effects models are used to estimate these elasticities. Additionally, this paper incorporates dynamic panel analysis within the constraints of the data. The data are from the Individual Tax Model File panel of taxpayers, maintained by the University of Michigan. This paper finds no significant price elasticities for nonitemizers. The results of this paper would argue that there is no compelling economic reason to extend charitable contribution deductions to nonitemizers.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Barrett, Kevin S. "Panel Data Estimates of Charitable Giving: A Synthesis of Techniques,"National Tax Journal, 44, 3, September 1991, pp. 365–81.Google Scholar
  2. Barry, John S. "Faith, Growth, and Charity,"Policy Review, 82, March/April 1997, p. 6.Google Scholar
  3. Broman, Amy J. "Statutory Tax Reform and Charitable Contributions: Evidence from a Recent Period of Reform,"Journal of the American Taxation Association, 11, 1, Fall 1989, pp. 7–21.Google Scholar
  4. Choe, Yong S.; Jeong, Jinook. "Charitable Contributions by Low- and Middle-Income Taxpayers: Further Evidence with a New Method,"National Tax Journal, 46, 1, March 1993, pp. 33–9.Google Scholar
  5. Clotfelter, Charles T. "Tax Incentives and Charitable Giving: Evidence from a Panel of Taxpayers,"Journal of Public Economics, 13, June 1980, pp. 319–40.CrossRefGoogle Scholar
  6. Dunbar, Amy E.; Phillips, John. "The Effect of Tax Policy on Charitable Contributions: The Case of Nonitemizing Taxpayers,"Journal of the American Taxation Association, 19, supplement, 1997, pp. 1–20.Google Scholar
  7. Duquette, Christopher M. "Is Charitable Giving by Nonitemizers Responsive to Tax Incentives? New Evidence,"National Tax Journal, 52, 2, June 1999, pp. 195–206.Google Scholar
  8. Internal Revenue Service.Statistics of Income Bulletin, various.Google Scholar
  9. Maddala, G. S.Introduction to Econometrics, 2nd ed., Englewood Cliffs, NJ: Prentice-Hall, 1992.Google Scholar
  10. Robinson, John R. "Estimates of the Price Elasticity of Charitable Giving: A Reappraisal Using 1985 Itemizer and Nonitemizer Charitable Deduction Data,"Journal of the American Taxation Association, 12, 1, Fall 1990, pp. 39–59.Google Scholar

Copyright information

© International Atlantic Economic Society 2001

Authors and Affiliations

  • David H. Eaton
    • 1
  1. 1.Murray State UniversityUSA

Personalised recommendations